(w.e.f. 1st April 2005)
The Delhi Government has repealed the Delhi Sales Tax Act, and The Value Added Tax has been brought into operation from 1st April 2005.
CONCEPT OF VAT(VALUE ADDED TAX)
VAT provides set-off for the tax paid earlier through input tax credit/rebate. This input tax credit can be set off by a registered dealer against the amount of his output tax. VAT is based on the value addition to the goods.
Registration of dealer with gross annual turnover above Rs. 10 lakh will be compulsory. All the existing dealer registered under Delhi sales tax will automatically registered under VAT act. A new dealer will be allowed 30days time limit from the date of liability to get registered.
Small Dealer with annual gross turnover not exceeding Rs. 50Lakh who are otherwise liable to pay VAT, shall however have the option for a composition scheme with payment of tax at small percentage of gross turnover. The dealer option composition scheme will not be entitle to input credit.
Under Vat simplified form of return are notified. Returns are to be filed monthly/quarterly as specified in the state acts/rules, and will be accompanied with the payment challans. Every return furnished by the dealer will be scruitnised expeditiously within prescribed time limit from the date of filling the return. If any technical mistake is detected on scrutiny, the dealer will be required to pay the deficit appropriately.
TAXPAYER'S IDENTIFICATION NUMBER (TIN)
The taxpayer's Identification Number will consist of 11digit numerals through out the country. First two characters will represent the state code as used by the union ministry of home affairs. The set up of the next nine characters may, however, be different in different states.
If a registered dealer is making a local sale to another registered dealer of Delhi, a tax invoice can be issued. Tax invoice should always mention:
- The word 'Tax Invoice' in a prominent place
- Identity of the seller (with registration number, name & address) [Pre printed]
- Identity of the buyer (with registration number, name & address)
- Description, quantity, volume and value of goods sold and services provided
- Amount charged with the amount of tax charged in the transaction indicated separately
In retail sales, which are much more numerous and of smaller amounts, retail sale invoice can be issued. Although retail invoice should always identify the seller and indication of buyer's name is optional. Sale price shall be inclusive of tax charged thereon. Moreover the word 'retail invoice' or 'bills' should be mentioned in a prominent place. No tax credit can be availed by the purchaser on the strength of retail invoice.
CENTRAL SALE NUMBER VAT
In the case of interstate sale/purchase the old provision of central sales tax act is applicable. The central statutory forms, i.e. Form C,D,F,H etc., shall continue to remain applicable.
For traders/ manufacturers in Delhi, We provide following services:
- How to get registration under VAT (Delhi)?
- Exempted Sales
- Know your Ward/Assessing officer
- Rate of VAT under Delhi VAT act
- Statutory Forms and how to get these forms
- Taxability of sale of fixed assets
- Regular assessment
- Appeal, revision and rectification of order
- Amendment in registration certificate
- Refund of tax